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10 Economic impacts of tourism + explanations + examples

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There are many economic impacts of tourism, and it is important that we understand what they are and how we can maximise the positive economic impacts of tourism and minimise the negative economic impacts of tourism.

Many argue that the tourism industry is the largest industry in the world. While its actual value is difficult to accurately determine, the economic potential of the tourism industry is indisputable. In fact, it is because of the positive economic impacts that most destinations embark on their tourism journey.

There is, however, more than meets the eye in most cases. The positive economic impacts of tourism are often not as significant as anticipated. Furthermore, tourism activity tends to bring with it unwanted and often unexpected negative economic impacts of tourism.

In this article I will discuss the importance of understanding the economic impacts of tourism and what the economic impacts of tourism might be. A range of positive and negative impacts are discussed and case studies are provided.

At the end of the post I have provided some additional reading on the economic impacts of tourism for tourism stakeholders , students and those who are interested in learning more.

 Foreign exchange earnings

Contribution to government revenues, employment generation, contribution to local economies, development of the private sector, infrastructure cost, increase in prices, economic dependence of the local community on tourism, foreign ownership and management, economic impacts of tourism: conclusion, further reading on the economic impacts of tourism, the economic impacts of tourism: why governments invest.

Tourism brings with it huge economic potential for a destination that wishes to develop their tourism industry. Employment, currency exchange, imports and taxes are just a few of the ways that tourism can bring money into a destination.

In recent years, tourism numbers have increased globally at exponential rates, as shown in the World Tourism Organisation data below.

There are a number of reasons for this growth including improvements in technology, increases in disposable income, the growth of budget airlines and consumer desires to travel further, to new destinations and more often.

economic impact of tourism in a destination

Here are a few facts about the economic importance of the tourism industry globally:

  • The tourism economy represents 5 percent of world GDP
  • Tourism contributes to 6-7 percent of total employment
  • International tourism ranks fourth (after fuels, chemicals and automotive products) in global exports
  • The tourism industry is valued at US$1trillion a year
  • Tourism accounts for 30 percent of the world’s exports of commercial services
  • Tourism accounts for 6 percent of total exports
  • 1.4billion international tourists were recorded in 2018 (UNWTO)
  • In over 150 countries, tourism is one of five top export earners
  • Tourism is the main source of foreign exchange for one-third of developing countries and one-half of less economically developed countries (LEDCs)

There is a wealth of data about the economic value of tourism worldwide, with lots of handy graphs and charts in the United Nations Economic Impact Report .

In short, tourism is an example of an economic policy pursued by governments because:

  •      it brings in foreign exchange
  •      it generates employment
  •      it creates economic activity

Building and developing a tourism industry, however, involves a lot of initial and ongoing expenditure. The airport may need expanding. The beaches need to be regularly cleaned. New roads may need to be built. All of this takes money, which is usually a financial outlay required by the Government.

For governments, decisions have to be made regarding their expenditure. They must ask questions such as:

How much money should be spent on the provision of social services such as health, education, housing?

How much should be spent on building new tourism facilities or maintaining existing ones?

If financial investment and resources are provided for tourism, the issue of opportunity costs arises.

By opportunity costs, I mean that by spending money on tourism, money will not be spent somewhere else. Think of it like this- we all have a specified amount of money and when it runs out, it runs out. If we decide to buy the new shoes instead of going out for dinner than we might look great, but have nowhere to go…!

In tourism, this means that the money and resources that are used for one purpose may not then be available to be used for other purposes. Some destinations have been known to spend more money on tourism than on providing education or healthcare for the people who live there, for example.

This can be said for other stakeholders of the tourism industry too.

There are a number of independent, franchised or multinational investors who play an important role in the industry. They may own hotels, roads or land amongst other aspects that are important players in the overall success of the tourism industry. Many businesses and individuals will take out loans to help fund their initial ventures.

So investing in tourism is big business, that much is clear. What what are the positive and negative impacts of this?

economic impacts of tourism

Positive economic impacts of tourism

So what are the positive economic impacts of tourism? As I explained, most destinations choose to invest their time and money into tourism because of the positive economic impacts that they hope to achieve. There are a range of possible positive economic impacts. I will explain the most common economic benefits of tourism below.

man sitting on street near tree

One of the biggest benefits of tourism is the ability to make money through foreign exchange earnings.

Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy. How a destination manages their finances differs around the world; some destinations may spend this money on growing their tourism industry further, some may spend this money on public services such as education or healthcare and some destinations suffer extreme corruption so nobody really knows where the money ends up!

Some currencies are worth more than others and so some countries will target tourists from particular areas. I remember when I visited Goa and somebody helped to carry my luggage at the airport. I wanted to give them a small tip and handed them some Rupees only to be told that the young man would prefer a British Pound!

Currencies that are strong are generally the most desirable currencies. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro .

Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.

Tourism can help to raise money that it then invested elsewhere by the Government. There are two main ways that this money is accumulated.

Direct contributions are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes.

Taxes differ considerably between destinations. I will never forget the first time that I was asked to pay a departure tax (I had never heard of it before then), because I was on my way home from a six month backpacking trip and I was almost out of money!

Japan is known for its high departure taxes. Here is a video by a travel blogger explaining how it works.

According to the World Tourism Organisation, the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.

Indirect contributions come from goods and services supplied to tourists which are not directly related to the tourism industry.

Take food, for example. A tourist may buy food at a local supermarket. The supermarket is not directly associated with tourism, but if it wasn’t for tourism its revenues wouldn’t be as high because the tourists would not shop there.

There is also the income that is generated through induced contributions . This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure Activities amongst others. This will all contribute to an increase in economic activity in the area where tourism is being developed.

economic impact of tourism in a destination

The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. Tourism supports some 7% of the world’s workers.

There are two types of employment in the tourism industry: direct and indirect.

Direct employment includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few.

Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry. Take a fisherman, for example. He does not have any contact of dealings with tourists. BUT he does sell his fish to the hotel which serves tourists. So he is indirectly employed by the tourism industry, because without the tourists he would not be supplying the fish to the hotel.

It is because of these indirect relationships, that it is very difficult to accurately measure the economic value of tourism.

It is also difficult to say how many people are employed, directly and indirectly, within the tourism industry.

Furthermore, many informal employments may not be officially accounted for. Think tut tut driver in Cambodia or street seller in The Gambia – these people are not likely to be registered by the state and therefore their earnings are not declared.

It is for this reason that some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!

All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy.

If sustainable tourism is demonstrated, money will be directed to areas that will benefit the local community most.

There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or volunteer tourism projects.

The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect.

The multiplier effect relates to spending in one place creating economic benefits elsewhere. Tourism can do wonders for a destination in areas that may seem to be completely unrelated to tourism, but which are actually connected somewhere in the economic system.

economic impact of tourism in a destination

Let me give you an example.

A tourist buys an omelet and a glass of orange juice for their breakfast in the restaurant of their hotel. This simple transaction actually has a significant multiplier effect. Below I have listed just a few of the effects of the tourist buying this breakfast.

The waiter is paid a salary- he spends his salary on schooling for his kids- the school has more money to spend on equipment- the standard of education at the school increases- the kids graduate with better qualifications- as adults, they secure better paying jobs- they can then spend more money in the local community…

The restaurant purchases eggs from a local farmer- the farmer uses that money to buy some more chickens- the chicken breeder uses that money to improve the standards of their cages, meaning that the chickens are healthier, live longer and lay more eggs- they can now sell the chickens for a higher price- the increased money made means that they can hire an extra employee- the employee spends his income in the local community…

The restaurant purchase the oranges from a local supplier- the supplier uses this money to pay the lorry driver who transports the oranges- the lorry driver pays road tax- the Government uses said road tax income to fix pot holes in the road- the improved roads make journeys quicker for the local community…

So as you can see, that breakfast that the tourist probably gave not another thought to after taking his last mouthful of egg, actually had the potential to have a significant economic impact on the local community!

architecture building business city

The private sector has continuously developed within the tourism industry and owning a business within the private sector can be extremely profitable; making this a positive economic impact of tourism.

Whilst many businesses that you will come across are multinational, internationally-owned organisations (which contribute towards economic leakage ).

Many are also owned by the local community. This is the case even more so in recent years due to the rise in the popularity of the sharing economy and the likes of Airbnb and Uber, which encourage the growth of businesses within the local community.

Every destination is different with regards to how they manage the development of the private sector in tourism.

Some destinations do not allow multinational organisations for fear that they will steal business and thus profits away from local people. I have seen this myself in Italy when I was in search of a Starbucks mug for my collection , only to find that Italy has not allowed the company to open up any shops in their country because they are very proud of their individually-owned coffee shops.

Negative economic impacts of tourism

Unfortunately, the tourism industry doesn’t always smell of roses and there are also several negative economic impacts of tourism.

There are many hidden costs to tourism, which can have unfavourable economic effects on the host community.

Whilst such negative impacts are well documented in the tourism literature, many tourists are unaware of the negative effects that their actions may cause. Likewise, many destinations who are inexperienced or uneducated in tourism and economics may not be aware of the problems that can occur if tourism is not management properly.

Below, I will outline the most prominent negative economic impacts of tourism.

woman holding tomatoes

Economic leakage in tourism is one of the major negative economic impacts of tourism. This is when money spent does not remain in the country but ends up elsewhere; therefore limiting the economic benefits of tourism to the host destination.

The biggest culprits of economic leakage are multinational and internationally-owned corporations, all-inclusive holidays and enclave tourism.

I have written a detailed post on the concept of economic leakage in tourism, you can take a look here- Economic leakage in tourism explained .

road landscape nature forest

Another one of the negative economic impacts of tourism is the cost of infrastructure. Tourism development can cost the local government and local taxpayers a great deal of money.

Tourism may require the government to improve the airport, roads and other infrastructure, which are costly. The development of the third runway at London Heathrow, for example, is estimated to cost £18.6billion!

Money spent in these areas may reduce government money needed in other critical areas such as education and health, as I outlined previously in my discussion on opportunity costs.

glass bottle of cola with empty bottle on white surface

One of the most obvious economic impacts of tourism is that the very presence of tourism increases prices in the local area.

Have you ever tried to buy a can of Coke in the supermarket in your hotel? Or the bar on the beachfront? Walk five minutes down the road and try buying that same can in a local shop- I promise you, in the majority of cases you will see a BIG difference In cost! (For more travel hacks like this subscribe to my newsletter – I send out lots of tips, tricks and coupons!)

Increasing demand for basic services and goods from tourists will often cause price hikes that negatively impact local residents whose income does not increase proportionately.

Tourism development and the related rise in real estate demand may dramatically increase building costs and land values. This often means that local people will be forced to move away from the area that tourism is located, known as gentrification.

Taking measures to ensure that tourism is managed sustainably can help to mitigate this negative economic impact of tourism. Techniques such as employing only local people, limiting the number of all-inclusive hotels and encouraging the purchasing of local products and services can all help.

Another one of the major economic impacts of tourism is dependency. Many countries run the risk of becoming too dependant on tourism. The country sees $ signs and places all of its efforts in tourism. Whilst this can work out well, it is also risky business!

If for some reason tourism begins to lack in a destination, then it is important that the destination has alternative methods of making money. If they don’t, then they run the risk of being in severe financial difficulty if there is a decline in their tourism industry.

In The Gambia, for instance, 30% of the workforce depends directly or indirectly on tourism. In small island developing states, percentages can range from 83% in the Maldives to 21% in the Seychelles and 34% in Jamaica.

There are a number of reasons that tourism could decline in a destination.

The Gambia has experienced this just recently when they had a double hit on their tourism industry. The first hit was due to political instability in the country, which has put many tourists off visiting, and the second was when airline Monarch went bust, as they had a large market share in flights to The Gambia.

Other issues that could result in a decline in tourism includes economic recession, natural disasters and changing tourism patterns. Over-reliance on tourism carries risks to tourism-dependent economies, which can have devastating consequences.

economic impact of tourism in a destination

The last of the negative economic impacts of tourism that I will discuss is that of foreign ownership and management.

As enterprise in the developed world becomes increasingly expensive, many businesses choose to go abroad. Whilst this may save the business money, it is usually not so beneficial for the economy of the host destination.

Foreign companies often bring with them their own staff, thus limiting the economic impact of increased employment. They will usually also export a large proportion of their income to the country where they are based. You can read more on this in my post on economic leakage in tourism .

As I have demonstrated in this post, tourism is a significant economic driver the world over. However, not all economic impacts of tourism are positive. In order to ensure that the economic impacts of tourism are maximised, careful management of the tourism industry is required.

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The Economic Impact of Tourism: What You Need to Know

Marc Truyols

How Much Does Tourism Contribute to the Global Economy?

The relationship between tourism and economic growth, how does tourism affect developing countries, what are the four economic impacts of tourism, leveraging the power of tourism for online travel agencies.

Tourism encompasses much more than just leisurely vacations and exploring far-off destinations. In fact, this vast industry plays a significant role in keeping the world economy thriving. 

When the world shut down due to the COVID-19 pandemic, we saw its devastating effects on the tourism industry. Airports were shut down, hotels were left empty, and online travel agencies experienced a complete halt in revenue. 

Like the rest of the world, the travel and tourism industry was in a state of limbo.

As we look to the future, it’s important to remember the power of tourism and its impacts on the global economy. In 2023, the tourism sector’s global market size is anticipated to exceed 2019 , with a market size estimated at $2.29tn.

The impact of tourism on the economy extends beyond generating income and employment. It acts as a growth engine, stimulating investment in infrastructure, promoting sustainable development, and fostering the conservation of cultural and natural heritage . This multifaceted influence demonstrates how tourism is fundamental to global economic development.

Global Tourism Market Growth

In this blog post, we’ll explore how tourism contributes to the economy and why it should be a priority for everyone.

Travel isn’t just good for the soul; it’s good for the economy. Let’s break down the numbers.

Contribution to Global GDP

Exploring the impact of tourism on the economy requires a detailed look at its contribution to the global GDP. This contribution is not only a direct reflection of tourist spending but also an indicator of how tourism stimulates the economy through job creation , infrastructure investment, and a boost to related industries.

In 2019, the travel and tourism industry accounted for 10.4% of global GDP – that’s $10 trillion! In 2022, the industry reached 7.6% of GDP .

Tourism Contribution to Global GDP

Not only does this include the direct spending by tourists in hotels, restaurants, and attractions, but it also includes indirect spending in industries such as transportation, shopping, and entertainment.

This data indicates the industry’s resilience and potential to bounce back. The travel and tourism industry will continue to contribute to the global economy.

Job Creation

In 2022, the tourism industry supported over 22 million jobs. When people think of tourism-related jobs, they usually think of travel agents, hotel staff, and workers at tourist attractions. However, there are also millions of people around the world who work in tourism and related industries.

Tourism-Driven Job Creation in 2022

The Interconnectedness of the Tourism Industry with Other Industries

The tourism industry is intricately connected to a wide array of other industries. 

It’s challenging to measure tourism’s exact contributions due to the level of fragmentation within the industry. However, its actual values are expected to be far greater than reported. This is because travelers also contribute to non-travel sectors such as retail, recreation, and entertainment.

Tourism is a significant driver of economic prosperity as it contributes to job creation and spurs innovation and investments.

Given the significant impact of tourism on the global economy, it’s important to examine the relationship between tourism and economic growth.

Tourism as a Driver for Economic Growth 

Increased demand stimulates the economy by creating jobs in different sectors, from hospitality to transport which brings in more revenue and opportunities for growth within the community.

Zurab Pololikashvili, the secretary general of UNWTO , said, “ Global tourism is on track to return to pre-pandemic levels by the end of year. By investing in people and projects that make a difference, we can deliver on the sector’s potential to drive growth and opportunity for all.”

In tourism, there are jobs that are directly related to tourism and tourism spending; for example, when a tourist travels to Barcelona, they will spend money on hotels, tour guides, and activities.

But there are also those indirectly related to tourism ; for instance, when they go to a restaurant in the city or shop at a local store, they contribute to the local economy.

The Multiplier Effect of Tourism

The interconnectedness of tourism also leads to the multiplier effect, which amplifies the economic impact of tourism on a region or country. 

Multiplier Effect of Tourism

The Journal of Risk and Financial Management conducted a study that found “The impact of tourism activity on economic development is determined by the current multiplier mechanism created by the existing revenue-expenditure flow in the sector due to international tourism movements.” 

Tourism also has a multiplier effect on other industries . For example, suppose a tourist spends money on a hotel room. In that case, the hotel purchases goods and services from other businesses, such as food, linen, and toiletries. These businesses, in turn, purchase goods and services from other companies, and the cycle continues.

This means that the economic impact of tourism is not limited to the tourism industry but spreads across various sectors of the economy. The expenditure of international tourists on tourism can generate income that may result in new revenue streams, investments, savings, and consumption.

The Role of Online Travel Agencies in Promoting Economic Growth 

Online travel agencies play an important role in promoting economic growth and development. They help connect travelers with different hotels, flights, and activities. 

However, they don’t just help them find the right place to stay or flight to book. OTAs also provide travelers with inspiration, knowledge, and insights to help them make the best trip decisions.

Their promotional activities can fastly increase the economic growth of the regions they promote. For instance, OTAs can promote different destinations and activities they may not know. Whether it’s a destination in the countryside or a less-traveled area such as many developing countries.

In addition to traditional methods of economic growth in tourism, the importance of exploring sustainable approaches, cannot be overstated. Gain a deeper understanding of this forward-thinking practice, which includes diverse examples and effective implementation strategies, in our in-depth exploration about what is regenerative tourism .

When tourists spend more money when they travel, and the money they spend is reinvested into the local economy, tourism directly impacts the economy.

Tourism increases economic activity. The influx of tourists drives up local businesses’ demand for services and products, creating jobs, increasing revenue, and reducing poverty.

Direct benefits include those created by tourism-related activities such as accommodation, transport, and attractions. Indirect benefits come from supporting activities to tourism, such as construction and retailing. 

Tourism also benefits developing countries in other ways, such as improving the perception of their country on the global stage and increasing foreign investment.

Challenges and Opportunities for Online Travel Agencies in Emerging Markets

In John Lea’s book, Tourism and Developments in the Third World , he discusses how small island communities depend more on foreign tourism than bigger countries. Island tourism can be a lifeline for many people in these places, particularly regarding job creation and economic opportunities. 

However, challenges like limited infrastructure, political instability, and lack of local tourism products still exist. 

The 5 A’s of tourism – attractions, activities, accessibility, accommodation, and amenities, play a significant role in determining the success of tourism in any destination. By improving these areas, emerging markets can better leverage and capitalize on their tourism potential.

Online travel agencies can play a crucial role in driving economic growth in these markets:

  • They have the potential to access untapped opportunities that are often overlooked.
  • They can promote lesser-known tourist hotspots with potential. 
  • They can partner with governments and local tourism stakeholders in emerging markets.
  • They are more agile and better equipped to respond quickly to changing market needs.
  • They can enable local players to expand their reach, open up new markets, and create economic value. 
  • They can provide a platform for local businesses to showcase their products.

Case Studies of Successful Tourism Development in Developing Countries

Case Studies of Tourism - Development in Developing Countries

South Africa

South Africa is an excellent example of a developing country that has successfully utilized tourism as an integral part of its economic growth plan. 

The tourism industry accounts for 3.7% of South Africa’s GDP. This is higher than the contribution of agriculture, utilities, and construction.

The country’s abundance of natural and cultural resources makes it a popular tourist destination for people worldwide. With its stunning beaches, mountains, and diverse wildlife reserves, it has become one of Africa’s most popular tourism destinations.

South African Tourism (SAT) and the Department of Tourism have aligned their strategic plan for 2020-2025 to encourage the growth and development of tourism in South Africa. This includes providing efficient marketing for tourist destinations and improving cooperation between different levels of government in managing tourism.

The accommodation industry’s total income in September 2022 increased by 79.3% compared to September 2021. Among all accommodation options, hotels experienced the most significant increase in total income , with a 118.6% rise.

Egypt is another great example of a developing country that has seen success in the tourism industry. Egypt’s tourism earnings are expected to reach $13.6 billion in 2023.

The Minister of Tourism, Ahmed Issa, aims to achieve an annual growth rate of 25% to 30% . This is part of Egypt’s plan to attract 30 million tourists by 2028. They aim to invest $30bn (30,000 rooms) to meet anticipated demand. Additionally, they plan to invest investment in customer experiences.

The focus of the Egyptian government is to offer improved tourism experiences . This includes promoting cultural heritage sites, nature-based tourism activities, and other diverse tourist attractions unique to Egypt.

India is another developing country rapidly gaining traction in the tourism industry. India’s total contribution to GDP in Travel & Tourism r anked sixth in 2022. Tourism jobs are expected to increase by 8.3% , reaching nearly 35 million employment opportunities.

The Ministry of Tourism launched the Swadesh Darshan scheme to promote theme-based tourism in India and harness its potential for development.

Their goals are to improve the local economies, generate job opportunities, promote industry skill development, increase private sector investment, and conserve local cultural and natural resources.

Four economic impacts of tourism

1. Infrastructure Development

Tourism provides the government and private sector with the revenue to invest in the infrastructure required for tourism activities . This includes the construction and renovation of roads, highways, and airports. For example, increased tourism can lead to improved access and transportation networks, which benefit the local economy and travelers alike.

2. Cultural Preservation 

Tourism also plays a role in preserving historical sites and cultural traditions. As many visitors worldwide flock to a destination to learn about its history and culture, tourism can help generate sufficient funds for cultural conservation efforts.

3. Natural Resources

Tourism can provide incentives for protecting and preserving natural resources and ecosystems. By introducing sustainable tourism practices, areas with important biodiversity can be better safeguarded against destruction while delivering economic benefits to the local community.

4. Local Entrepreneurship and Small Business Growth

The influx of visitors to a destination can also stimulate the growth of small, locally-owned businesses. Restaurants and retail stores often experience increased profits. At the same time, entrepreneurs can take advantage of new opportunities in the tourism industry.

Online travel agencies play a vital role in the tourism industry, providing the convenience of booking services with just a few clicks. With the right strategies, OTAs can leverage the power of tourism to maximize its economic impact. 

Strategies for Maximizing the Positive Economic Impact of Tourism:

There are three strategies for maximizing the positive impact of tourism: understanding the local economy, promoting responsible and sustainable tourism practices, and adapting to evolving trends in the tourism industry.

Strategies for Maximizing the Positive Economic Impact of Tourism

1. Understand the Local Economy. 

To better serve your clients, it’s crucial to comprehend how tourism can economically benefit various regions based on the type of travel agency you operate . This knowledge can then aid you in aligning your clients’ interests with your business goals.

For example, tourists visiting a region may stimulate local businesses and introduce new products that would otherwise not be available. This can have a ripple effect on the local economy.

2. Promoting Responsible and Sustainable Tourism Practices

The way online travel agencies advertise and promote their services based on responsible and sustainable tourism practices has changed over the years. 

OTAs can support this by promoting sustainable and ethical travel opportunities that empower local communities.

For example, an OTA may promote eco-friendly accommodations, sustainable tour operators, and local community initiatives.

3. Adapting to Evolving Trends in the Tourism Industry

Tourists often seek out new experiences, and OTAs can provide information about activities that match their interests.

For example, experiential travel, which focuses on activities such as cultural experiences and outdoor adventures, has been gaining traction in recent years.

The economic impact of tourism is enormous, and the industry has the potential to be a significant driver of global economic growth. 

OTA’s have an important role to play in the continued success of this sector, and understanding the economic impact that tourism has on their business can help them make smart decisions and continue to grow their business. Tourism affects not only these agencies but also hotels, airlines, and other related businesses. Additionally, the industry provides many opportunities for growth and development in the tourism sector. As governments worldwide strive to create more sustainable and environmentally conscious development models, the tourism industry can provide a key source of income and job opportunities.

For insights into successful tourism marketing strategies, offering valuable perspectives and case studies and, as we explore the significant economic impact of tourism, it’s also important to understand how effective campaigns in tourism can amplify this impact.

Importance of Tourism in the economy

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Marc Truyols

Marc Truyols has a degree in Tourism from the University of the Balearic Islands. Marc has extensive experience in the leisure, travel and tourism industry. His skills in negotiation, hotel management, customer service, sales and hotel management make him a strong business development professional in the travel industry.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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Economic Impact Research

  • In 2022, the Travel & Tourism sector contributed 7.6% to global GDP ; an  increase of 22%  from 2021 and only  23%  below 2019 levels.
  • In 2022, there were  2 2 million new jobs , representing a 7.9% increase on 2021, and only 11.4% below 2019.
  • Domestic visitor  spending  increased by 20.4%  in 2022, only 14.1% below 2019.
  • International visitor spending  rose by 81.9% in 2022, but still 40.4% behind 2019 numbers.

Regional overview 2019

WTTC EIR Regional Overview 2019

Regional overview 2022

WTTC EIR Regional Overview 2022

Regional overview 2022 vs 2019

WTTC EIR Regional Overview 2022 vs 2019

Why conduct research?

From the outset, our Members realised that hard economic facts were needed to help governments and policymakers truly understand the potential of Travel & Tourism. Measuring the size and growth of Travel & Tourism and its contribution to society, therefore, plays a vital part in underpinning WTTC’s work.

What research does WTTC carry out?

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Reimagining the $9 trillion tourism economy—what will it take?

Tourism made up 10 percent of global GDP in 2019 and was worth almost $9 trillion, 1 See “Economic impact reports,” World Travel & Tourism Council (WTTC), wttc.org. making the sector nearly three times larger than agriculture. However, the tourism value chain of suppliers and intermediaries has always been fragmented, with limited coordination among the small and medium-size enterprises (SMEs) that make up a large portion of the sector. Governments have generally played a limited role in the industry, with partial oversight and light-touch management.

COVID-19 has caused an unprecedented crisis for the tourism industry. International tourist arrivals are projected to plunge by 60 to 80 percent in 2020, and tourism spending is not likely to return to precrisis levels until 2024. This puts as many as 120 million jobs at risk. 2 “International tourist numbers could fall 60-80% in 2020, UNWTO reports,” World Tourism Organization, May 7, 2020, unwto.org.

Reopening tourism-related businesses and managing their recovery in a way that is safe, attractive for tourists, and economically viable will require coordination at a level not seen before. The public sector may be best placed to oversee this process in the context of the fragmented SME ecosystem, large state-owned enterprises controlling entry points, and the increasing impact of health-related agencies. As borders start reopening and interest in leisure rebounds in some regions , governments could take the opportunity to rethink their role within tourism, thereby potentially both assisting in the sector’s recovery and strengthening it in the long term.

In this article, we suggest four ways in which governments can reimagine their role in the tourism sector in the context of COVID-19.

1. Streamlining public–private interfaces through a tourism nerve center

Before COVID-19, most tourism ministries and authorities focused on destination marketing, industry promotions, and research. Many are now dealing with a raft of new regulations, stimulus programs, and protocols. They are also dealing with uncertainty around demand forecasting, and the decisions they make around which assets—such as airports—to reopen will have a major impact on the safety of tourists and sector employees.

Coordination between the public and private sectors in tourism was already complex prior to COVID-19. In the United Kingdom, for example, tourism falls within the remit of two departments—the Department for Business, Energy, and Industrial Strategy (BEIS) and the Department for Digital, Culture, Media & Sport (DCMS)—which interact with other government agencies and the private sector at several points. Complex coordination structures often make clarity and consistency difficult. These issues are exacerbated by the degree of coordination that will be required by the tourism sector in the aftermath of the crisis, both across government agencies (for example, between the ministries responsible for transport, tourism, and health), and between the government and private-sector players (such as for implementing protocols, syncing financial aid, and reopening assets).

Concentrating crucial leadership into a central nerve center  is a crisis management response many organizations have deployed in similar situations. Tourism nerve centers, which bring together public, private, and semi-private players into project teams to address five themes, could provide an active collaboration framework that is particularly suited to the diverse stakeholders within the tourism sector (Exhibit 1).

We analyzed stimulus packages across 24 economies, 3 Australia, Bahrain, Belgium, Canada, Egypt, Finland, France, Germany, Hong Kong, Indonesia, Israel, Italy, Kenya, Malaysia, New Zealand, Peru, Philippines, Singapore, South Africa, South Korea, Spain, Switzerland, Thailand, and the United Kingdom. which totaled nearly $100 billion in funds dedicated directly to the tourism sector, and close to $300 billion including cross-sector packages with a heavy tourism footprint. This stimulus was generally provided by multiple entities and government departments, and few countries had a single integrated view on beneficiaries and losers. We conducted surveys on how effective the public-sector response has been and found that two-thirds of tourism players were either unaware of the measures taken by government or felt they did not have sufficient impact. Given uncertainty about the timing and speed of the tourism recovery, obtaining quick feedback and redeploying funds will be critical to ensuring that stimulus packages have maximum impact.

2. Experimenting with new financing mechanisms

Most of the $100 billion stimulus that we analyzed was structured as grants, debt relief, and aid to SMEs and airlines. New Zealand has offered an NZ $15,000 (US $10,000) grant per SME to cover wages, for example, while Singapore has instituted an 8 percent cash grant on the gross monthly wages of local employees. Japan has waived the debt of small companies where income dropped more than 20 percent. In Germany, companies can use state-sponsored work-sharing schemes for up to six months, and the government provides an income replacement rate of 60 percent.

Our forecasts indicate that it will take four to seven years for tourism demand to return to 2019 levels, which means that overcapacity will be the new normal in the medium term. This prolonged period of low demand means that the way tourism is financed needs to change. The aforementioned types of policies are expensive and will be difficult for governments to sustain over multiple years. They also might not go far enough. A recent Organisation for Economic Co-operation and Development (OECD) survey of SMEs in the tourism sector suggested more than half would not survive the next few months, and the failure of businesses on anything like this scale would put the recovery far behind even the most conservative forecasts. 4 See Tourism policy responses to the coronavirus (COVID-19), OECD, June 2020, oecd.org. Governments and the private sector should be investigating new, innovative financing measures.

Revenue-pooling structures for hotels

One option would be the creation of revenue-pooling structures, which could help asset owners and operators, especially SMEs, to manage variable costs and losses moving forward. Hotels competing for the same segment in the same district, such as a beach strip, could have an incentive to pool revenues and losses while operating at reduced capacity. Instead of having all hotels operating at 20 to 40 percent occupancy, a subset of hotels could operate at a higher occupancy rate and share the revenue with the remainder. This would allow hotels to optimize variable costs and reduce the need for government stimulus. Non-operating hotels could channel stimulus funds into refurbishments or other investment, which would boost the destination’s attractiveness. Governments will need to be the intermediary between businesses through auditing or escrow accounts in this model.

Joint equity funds for small and medium-size enterprises

Government-backed equity funds could also be used to deploy private capital to help ensure that tourism-related SMEs survive the crisis (Exhibit 2). This principle underpins the European Commission’s temporary framework for recapitalization of state-aided enterprises, which provided an estimated €1.9 trillion in aid to the EU economy between March and May 2020. 5 See “State aid: Commission expands temporary framework to recapitalisation and subordinated debt measures to further support the economy in the context of the coronavirus outbreak,” European Commission, May 8, 2020, ec.europa.eu. Applying such a mechanism to SMEs would require creating an appropriate equity-holding structure, or securitizing equity stakes in multiple SMEs at once, reducing the overall risk profile for the investor. In addition, developing a standardized valuation methodology would avoid lengthy due diligence processes on each asset. Governments that do not have the resources to co-invest could limit their role to setting up those structures and opening them to potential private investors.

3. Ensuring transparent, consistent communication on protocols

The return of tourism demand requires that travelers and tourism-sector employees feel—and are—safe. Although international organizations such as the International Air Transport Association (IATA), and the World Travel & Tourism Council (WTTC) have developed a set of guidelines to serve as a baseline, local regulators are layering additional measures on top. This leads to low levels of harmonization regarding regulations imposed by local governments.

Our surveys of traveler confidence in the United States  suggests anxiety remains high, and authorities and destination managers must work to ensure travelers know about, and feel reassured by, protocols put in place for their protection. Our latest survey of traveler sentiment in China  suggests a significant gap between how confident travelers would like to feel and how confident they actually feel; actual confidence in safety is much lower than the expected level asked a month before.

One reason for this low level of confidence is confusion over the safety measures that are currently in place. Communication is therefore key to bolstering demand. Experience in Europe indicates that prompt, transparent, consistent communications from public agencies have had a similar impact on traveler demand as CEO announcements have on stock prices. Clear, credible announcements regarding the removal of travel restrictions have already led to increased air-travel searches and bookings. In the week that governments announced the removal of travel bans to a number of European summer destinations, for example, outbound air travel web search volumes recently exceeded precrisis levels by more than 20 percent in some countries.

The case of Greece helps illustrate the importance of clear and consistent communication. Greece was one of the first EU countries to announce the date of, and conditions and protocols for, border reopening. Since that announcement, Greece’s disease incidence has remained steady and there have been no changes to the announced protocols. The result: our joint research with trivago shows that Greece is now among the top five summer destinations for German travelers for the first time. In July and August, Greece will reach inbound airline ticketing levels that are approximately 50 percent of that achieved in the same period last year. This exceeds the rate in most other European summer destinations, including Croatia (35 percent), Portugal (around 30 percent), and Spain (around 40 percent). 6 Based on IATA Air Travel Pulse by McKinsey. In contrast, some destinations that have had inconsistent communications around the time frame of reopening have shown net cancellations of flights for June and July. Even for the high seasons toward the end of the year, inbound air travel ticketing barely reaches 30 percent of 2019 volumes.

Digital solutions can be an effective tool to bridge communication and to create consistency on protocols between governments and the private sector. In China, the health QR code system, which reflects past travel history and contact with infected people, is being widely used during the reopening stage. Travelers have to show their green, government-issued QR code before entering airports, hotels, and attractions. The code is also required for preflight check-in and, at certain destination airports, after landing.

4. Enabling a digital and analytics transformation within the tourism sector

Data sources and forecasts have shifted, and proliferated, in the crisis. Last year’s demand prediction models are no longer relevant, leaving many destinations struggling to understand how demand will evolve, and therefore how to manage supply. Uncertainty over the speed and shape of the recovery means that segmentation and marketing budgets, historically reassessed every few years, now need to be updated every few months. The tourism sector needs to undergo an analytics transformation to enable the coordination of marketing budgets, sector promotions, and calendars of events, and to ensure that products are marketed to the right population segment at the right time.

Governments have an opportunity to reimagine their roles in providing data infrastructure and capabilities to the tourism sector, and to investigate new and innovative operating models. This was already underway in some destinations before COVID-19. Singapore, for example, made heavy investments in its data and analytics stack over the past decade through the Singapore Tourism Analytics Network (STAN), which provided tourism players with visitor arrival statistics, passenger profiling, spending data, revenue data, and extensive customer-experience surveys. During the COVID-19 pandemic, real-time data on leading travel indicators and “nowcasts” (forecasts for the coming weeks and months) could be invaluable to inform the decisions of both public-sector and private-sector entities.

This analytics transformation will also help to address the digital gap that was evident in tourism even before the crisis. Digital services are vital for travelers: in 2019, more than 40 percent of US travelers used mobile devices to book their trips. 7 Global Digital Traveler Research 2019, Travelport, marketing.cloud.travelport.com; “Mobile travel trends 2019 in the words of industry experts,” blog entry by David MacHale, December 11, 2018, blog.digital.travelport.com. In Europe and the United States, as many as 60 percent of travel bookings are digital, and online travel agents can have a market share as high as 50 percent, particularly for smaller independent hotels. 8 Sean O’Neill, “Coronavirus upheaval prompts independent hotels to look at management company startups,” Skift, May 11, 2020, skift.com. COVID-19 is likely to accelerate the shift to digital as travelers look for flexibility and booking lead times shorten: more than 90 percent of recent trips in China  were booked within seven days of the trip itself. Many tourism businesses have struggled to keep pace with changing consumer preferences around digital. In particular, many tourism SMEs have not been fully able to integrate new digital capabilities in the way that larger businesses have, with barriers including language issues, and low levels of digital fluency. The commission rates on existing platforms, which range from 10 percent for larger hotel brands to 25 percent for independent hotels, also make it difficult for SMEs to compete in the digital space.

Governments are well-positioned to overcome the digital gap within the sector and to level the playing field for SMEs. The Tourism Exchange Australia (TXA) platform, which was created by the Australian government, is an example of enabling at scale. It acts as a matchmaker, connecting suppliers with distributors and intermediaries to create packages attractive to a specific segment of tourists, then uses tourist engagement to provide further analytical insights to travel intermediaries (Exhibit 3). This mechanism allows online travel agents to diversify their offerings by providing more experiences away from the beaten track, which both adds to Australia’s destination attractiveness, and gives small suppliers better access to customers.

Government-supported platforms or data lakes could allow the rapid creation of packages that include SME product and service offerings.

Governments that seize the opportunity to reimagine tourism operations and oversight will be well positioned to steer their national tourism industries safely into—and set them up to thrive within—the next normal.

Download the article in Arabic  (513KB)

Margaux Constantin is an associate partner in McKinsey’s Dubai office, Steve Saxon is a partner in the Shanghai office, and Jackey Yu  is an associate partner in the Hong Kong office.

The authors wish to thank Hugo Espirito Santo, Urs Binggeli, Jonathan Steinbach, Yassir Zouaoui, Rebecca Stone, and Ninan Chacko for their contributions to this article.

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The impact of tourism: how can we all do this better, john perrottet, beril benli, this page in:.

Tourism is growing, and growing fast. After surpassing 1 billion international visitors in 2012, we are expecting 1.8 billion by 2030. Tourism is growing faster than the global economy and, for the first time, the statistics for 2015 are expected to show that there were more trips taken to the developing world than to the developed world. But what does this actually mean? Growth, on its own, is not enough. Destinations and their stakeholders are responsible for ensuring that growth is well-managed; that benefits are maximized; and that any negative externalities are minimized. This requires a continuous process of planning and management that evolves and that can be measured over time. For the World Bank Group, our clients and our development partners, this process of planning and management is a central interest. How can we help these processes to deliver more and better development impact? What kinds of interventions or types of assistance will deliver the best results? How do you define the best results – for whom? – and how do we measure them? Being able to demonstrate how the tourism sector contributes to the Bank Group’s twin goals of eliminating extreme poverty and promoting shared prosperity is an imperative for all stakeholders. It’s relevant for national governments, sub-national state agencies, businesses (both multinationals and SMEs), multilateral development banks, NGOs, academics and think tanks. Moreover, it’s vital in helping guide future planning and development, gaining access to and applying for funding, and demonstrating progress to constituents at all levels.

Despite the great breadth and depth of existing impact information, however, serious concerns remain about the accuracy, complexity, gaps, comparability and sustainability of the types of the impact analyses that have been carried out. The Bank Group’s Sustainable Tourism Global Solutions Group recently convened a thought-leadership event in Washington to begin a preliminary discussion about how all stakeholders can come together to try and address some of the current shortcomings. During the “ Measuring for Impact in Touris m” event, we heard about a wide range of challenges for those working in this area and we began to map out the greatest gaps and issues. As Anabel Gonzalez, the Senior Director of the Trade and Competitiveness Global Practice, said at that conference: “We want to be better at monitoring and evaluating our impact, we want to learn from others, and we want to contribute more effectively to tourism development.  I believe these are goals most of you will share. We invite you to join this discussion – and be frank, open and provocative.”The findings can be found in our report, “ Towards More Effective Impact Measurement in the Tourism Sector: Observations and Key Issues ,” which highlights a number of priorities. Some of those challenges concern the availability, quality and consistency of data; the high cost of impact measurement for SMEs; the proliferation of different systems; issues of attribution; quantifying notions of “value”; and the ability to communicate effectively to a wide range of audiences. Some key areas for immediate follow-up and further analysis were also identified. They include:

  • Exploring the theory of change by examining more closely the proposition  that, when tourism growth occurs, those living in extreme poverty benefit and by digging deeper into what tourism growth really means for the poor, especially in terms of employment. 
  • Assessing the impact value of different types of tourism.
  • Assessing and developing the role of technology for data collection, impact measurement and communication.
  • Evaluating the use of training for better communication – including assessing what has been tried and what has worked and considering how it could be scaled up. 
  • Analyzing the necessity and practicality of improving collaboration among various actors, and assessing the alignment of frameworks along with proposals for greater alignment.
  • Developing ideas and proposals for the enhanced sharing and pooling of impact data.
  • Developing ideas and proposals for greater inclusion of SMEs.

John Perrottet's picture

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Thank you, this is a very useful summary report and outlines some of the key gaps. Several observations: - Macro versus micro: I think we need to distinguish those two levels clearly, because there are different stakeholders, metrics and research methods. E.g. we are using CGE models to assess the role of tourism in economies (e.g. export value, job creation, tax revenue) etc, which gives a good indication of tourism's potential to alleviate poverty at a national level, but we may use in-depth (possibly qualitative) approaches to understand local-level effects, for example income distribution, changes in culture and community structures etc. A PhD student of mine is undertaking research on tourism as a change agent in a tourism-dependent village in Fiji - the balance it not necessarily all positive - even though total income has increased. He also compared this village to a non-tourism (traditional) village which had less monetary values, but was overall more resilient and intact on a range of other dimensions. High level tracking versus management-oriented monitoring: I think we need both. As you know, we are working on a Global Sustainable Tourism Dashboard (Griffith and Surrey University) to monitor global trends. The Dashboard is well on its way and will help to give an overall assessment of areas that trend well and those that need improvement. However, this does not replace detailed monitoring of, say carbon emissions or employment practices, at the company or destination level. Third-party certification: There are a lot of schemes out there that are very light-weight. They do not provide sufficient guidance on how to measure/monitor, and they do not require external auditing. Auditing is very important - not only because it enhances the credibility, but also because the audit process actually usually reveals little errors, misconcpetions, inaccuracies, potentials for further improvement - all of which help the business to do better. Companies are quite used to financial auditing - why not sustainable auditing. Climate impact: the Achilles heel of tourism is the carbon footprint. Whilst I understand the focus on poverty one must remember the aim to achieve a decarbonisation of tourism. After all, if tourism contributes about 5% to global GHG emissions, it is also 5% responsible (in theory) for impacts - which as we know exacerbate poverty. Big data: we have started several projects involving big data, and some of the issues that are raised in the paper could be addressed by linking existing databases for 'deep learning' and also better integration. This presents a cost effective way and if an organisation took responsibility it could become an open source resource. I am happy to elaborate. All the best, I am looking forward to hearing more and hopefully I can attend one of the next meetings, Susanne Becken Griffith University Australia

Thank you so much for your detailed comments and suggestions, we will incorporate your feedback where appropriate for the final version. You reference to big data and the complexities of getting it right are very pertinent and it is certainly one of the ways forward that we would like to explore in more depth. If you have any further thoughts or ideas for collaboration, please send them to [email protected] . Many thanks again!

Helpful Summary comments Para 1 It would be important to also mention the impact of national tourism, as this may have a far larger impct ( negative and positive) it would be most productive to look at the China local tourism experience and impact. Para 7 A key area which needs assessment is the need for and impact of investments in physical and policy interventions. Policy and action to put in place Sustainable services and infrastructure is a sine qua non for success.

I support the need for a common tool and language to address sustainability for the many aspects of tourism. The work which we did to establish indicators was done as a sensitivity instrument as well as a potential tool in defining which factors were most essential to sustain in destinations. The subsequent work on GSTC criteria was done to try to establish expected standards for a destination which considered itself to be sustainable. Taking this further as an evaluation tool will add value and it might be helpful in 2.5 to explicitly recognize the potential for formal evaluation - both of projects and state of destinations regarding key criteria. The assumptions relating to attribution for any individual initiatives are always problematic; we have had some successes by scaling evaluations to the aggregate level where collective attribution is easier to measure (but not to allocate) when asssessing the results of investments or program initiatives. One current challenge globally is trying to aggregate information from destination and or national sources to be able to do higher level analysis and portrayal of the impacts of the tourism sector. I would mention the idea of satellite accounting which is in use in some nations to try to measure levels of tourism and of impacts at larger scales. With regard to limits of acceptable change, the addition of sensitivity analysis of impacts at different levels of change (both to perceived levels of disruption and to documentable ecological and social impact) would be another means to refine what is really meant by tourism impacts. Indicators of both perceived impact and perceived response can be useful. I would note that UNWTO has begun a series of observatories which can serve as potential laboratories to test some of the mentioned techniques and tools.

Thank you Edward for sharing your views with us. We would like to further discuss and collaborate on the issues you address. If you have any further thoughts, please send them to [email protected] .

On Tourism Impacts Concerning: Towards More Effective Impact Measurement in the Tourism Sector First, our compliments to the WBG Sustainable Tourism Global Solutions Group on this excellent paper and on the World Bank’s willingness to evaluate the use of tourism for development in a sustainable and responsible context. We have one general observation and only a handful of comments on specific parts of the report. General observation: A fundamental truth often overlooked or underappreciated in tourism development discussions is this: The ultimate tourism product is the place itself. The character of the destination—its people, its natural and cultural assets, its aesthetic appeal—comprises the unique selling point on which inbound tourism depends. (The only exceptions are purely manufactured attractions, such as Disneyworld or the Las Vegas Strip.) From the point of view of long-term sustainable economic development, distinctive identity of place ensures market differentiation, whereas look-alike beach resorts, for example, can be easily undersold by another destination that offers the same thing cheaper. The commendable goal of shared community prosperity through tourism thus requires taking care of the shared community assets that support it. This is a litmus test for truly sustainable tourism. Conventional tourism development sometimes fails the test; sometimes it may even degrade those assets. Inversely, when those assets are threatened by other internal or external pressures, responsible but fragmented tourism interests may fail to rally in defense of the character of their place. Specific comments, by section: §2.2 Reinforces our general observation about protecting tourism assets. It is important to recognize that there comes a point of diminishing returns when numbers of tourists exceed carrying capacity, a.k.a. limits of acceptable change. This has already occurred at numerous World Heritage destinations. §2.6, 2.7 “…The best possible outcome for their economies and their communities.” We believe this impact must be measured not only economically, but in terms of social factors and protection or enhancement of tourism assets, whether real or intangible. §3.6 We agree that impact metrics need to be aligned among stakeholders—a term that should include those often omitted as stakeholders, such as the destination residents and the tourists themselves. It is critical that impact metrics are measured on a continuous basis in order to maintain a successful, proactive destination stewardship plan. Continuity may therefore require that the destination government be willing to share oversight with independently selected nongovernmental members of a stewardship council. §3.10 The “compelling” convenience of dodging complexity by relying on quantified economic value does not negate the need for other impact reporting as well. Impact assessment should include not only social factors for local populations but also impacts on the evolving character and quality of the types of tourism being employed. This is especially important for such unquantifiables as tourism effects on cultural preservation/degradation and the all-important but often overlooked matter of aesthetics: Is the destination becoming more—or less—attractive and appealing? Polls and surveys of both local and visitor opinion are one way to acquire this data. §4.2 We are pleased to see these systems included in the report. They are frequently overlooked by economic development authorities worldwide. §4.3 We would also call attention to the detailed, European-based Green (or Sustainable) Destinations rating system, a still-developing database that is striving to establish a holistic system for measuring destination stewardship. §5.3 (and 6.3i) This excellent point identifies and opportunity for deploying Bank expertise—i.e.,: analyze tourist spending per footprint, determine where the money goes and its effects along the value chain, both positive and negative. §5.4 We wholeheartedly concur. Different types of tourism can have greatly varying impacts, both positive and negative. §5.6 This point cannot be overemphasized. Tourism is an effective but dangerous tool. As often noted, it is a “fire that can cook your food or burn your house down.” The need to guard against negative and even self-destructive impacts should permeate WBG work in this area. §6.3 As a developing information and resources clearinghouse, the Destination Stewardship Center seeks ways to further help WBG achieve the commendable purposes outlined in this paper, and in helping to fill these gaps. While all seven named areas are of interest to us, §6.3ii,iv, and v are well suited to our current range of expertise and available resources, as is 6.4: §6.4 Among many additional topics worthy of attention are indigenous and minority tourism, tourism in the interest of public education, crowd-sourced citizen-science and observational reporting, and many others. Additionally, some destinations that have already adopted a sustainable-tourism vision nevertheless still urgently need a toolkit for designing and implementing it. Several organizations (including our own) have developed components for building such plans, with the goal of ensuring that destinations have rapid access to practical knowledge, resources, and markets. Presumably, the Bank itself could contribute to such toolkits with guidance on access to funding. The end result would be a process for destination stakeholders to create economically responsible stewardship and development plans custom tailored for their own unique sets of assets. --Jonathan B. Tourtellot Sponsor and Portal Editor, Destination Stewardship Center Founder & Director, National Geographic Center for Sustainable Destinations 2001-2010

A Good Overview Thanks for bringing together the information on impact monitoring. I suggest a review of all the monitoring programs, for use by decision makers, based on a set of criteria that includes measurability of the indicator. As a representative of two university research programs, I have had the opportunity to review most of these monitoring systems and have had students study the applicability of these systems to real life government and business situations. A short report by Cornell on a number of the systems in 4.3 was done in 2014 in collaboration with STI to understand how viable these systems were for the future of sustainable tourism decision making. We would be happy to share this report. In terms of next steps, we believe at Harvard and Cornell that the use of measurable indicators, which can be reported on globally, using advanced cloud based technologies for sharing information, would transform tourism planning. A report that compares all existing indicators and narrows them into measurable categories which can be tested in the field through a variety of regions, could move this forward. (The agriculture sector achieved this type of comparison and it has been very effective) In 5.2 there is a discussion of how to incorporate externalities into the measurement of tourism economic impacts and we agree this is crucial. Assessing externalities can be done initially through existing data systems which can be deployed. For example at Harvard we use the state-of-the-art multi-regional input/output methods combined with a unique and transparent database on social risks and opportunities, the Social Hotspot Database (SHDB). The SHDB includes over 90 indicators collected from over 250 sources, and covers 5 main social impact categories. In 5.5 there is the concern that tourism still needs to sell itself as a growth and poverty reduction tool. Given the new Accor Planet 21 report and the TIMM report, both of which were undertaken by large corporations, it might not be as necessary as the WBG thinks, as the corporate community is increasingly becoming effective at making this case. In 5.6 we do agree that these measurement tools are based on positive impacts. There can certainly be systems that would review the net impacts, and in fact a new balance sheet system for governments to assess the cost of managing destinations, using accounting principles, is now being investigated by our team at Cornell to discover how we can properly account for tourism assets in supply chains in future, and ensure they are protected. A study is beginning on that this semester at the Center for Sustainable Global Enterprise. 6.3 We agree that the role of technology for impact collection is critical, and at Harvard we have been able to test geodesign systems as introduced in 4.3.7 to demonstrate how effectively they can empower local governments to deploy planning systems in a cost effective manner working with their own citizens. If development organizations begin to assist local municipalities by financing training and technology transfer this could revolutionize local capacity to manage tourism. We look forward to discussing how to create global, cloud based impact measurement systems which use measurable indicators which demonstrate impact. We also highly encourage a focus on local government, to give them the capacity to manage their resources including water, solid waste and waste water. These actors lack capacity and often budgets to manage their own destinations at the municipal level, and there will be a need to assess how to pay for necessary infrastructure to ensure sustainability urgently in the very near future. We look forward at both Harvard and Cornell to enhance and provide academic resources, academic cooperation and global on-line training capacity to make tourism planning more cost effective, global and effective both by training young professionals to carry out work, and to help local institutions to manage their own future.

One of the take home lessons from this week's Conservation Travel Lab is investments in the tourism sector must create incentives for governments, communities, the private sector to conserve their natural and cultural tourism assets. Why? In the long term, product differentiation and the quality of the traveler's experience is paramount. It lays the foundation to create tourism product which truly benefits disenfranchised communities.

Nice post so informative keep sharing such a wonderful post with us

I am a tour guide working with Torch Light Tours in Ghana, West Africa. I think this a very insightful piece of information.

Thanks for sharing.

Understanding and overcoming negative impacts of tourism in city destinations: conceptual model and strategic framework

Journal of Tourism Futures

ISSN : 2055-5911

Article publication date: 15 November 2017

Issue publication date: 15 December 2017

The purpose of this paper is to clarify the mechanisms of conflict between residents and tourists and to propose a conceptual model to assess the impact of such conflicts on city tourism and to suggest a framework to develop strategies to deal with such conflicts and mitigate negative impacts.

Design/methodology/approach

Based on desk research a conceptual model was developed which describes the drivers of conflicts between residents and visitors. Building blocks of the model are visitors and their attributes, residents and their attributes, conflict mechanisms and critical encounters between residents and visitors, and indicators of the quality and quantity of tourist facilities. Subsequently the model was used to analyse the situation in Hamburg. For this analysis concentration values were calculated based on supply data of hotels and AirBnB, app-data, and expert consultations.

The study shows that in Hamburg there are two key mechanisms that stimulate conflicts: (1) the number of tourists in relation to the number of residents and its distribution in time and space; (2) the behaviour of visitors measured in the norms that they pose onto themselves and others (indecent behaviour of tourists).

Research limitations/implications

The model that was developed is a conceptual model, not a model with which hypotheses can be tested statistically. Refinement of the model needs further study.

Practical implications

Based on the outcomes of the study concrete strategies were proposed with which Hamburg could manage and control the balance of tourism.

Originality/value

City tourism has been growing in the last decades, in some cases dramatically. As a consequence, conflicts between tourists, tourism suppliers and inhabitants can occur. The rise of the so-called sharing economy has recently added an additional facet to the discussion. The ability to assess and deal with such conflicts is of importance for the way city tourism can develop in the future. This study is an attempt to contribute to the understanding of the mechanism behind and the nature of those conflicts, and the way they can be managed and controlled. Besides it illustrates how data generated by social media (apps) can be used for such purposes.

  • City tourism

Conflict mechanisms

  • Host-guest relations
  • Overtourism
  • Tourism impact studies
  • Visitor management

Postma, A. and Schmuecker, D. (2017), "Understanding and overcoming negative impacts of tourism in city destinations: conceptual model and strategic framework", Journal of Tourism Futures , Vol. 3 No. 2, pp. 144-156. https://doi.org/10.1108/JTF-04-2017-0022

Emerald Publishing Limited

Copyright © 2017, Albert Postma Dirk Schmuecker

Published in the Journal of Tourism Futures. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

Introduction

Tourism is subject to massive growth. Projections made by the World Tourism Organisation anticipate a growth to 1.8 billion international arrivals worldwide till 2030. Based on its World Tourism Monitor, IPK states that city tourism is the fastest growing market segment in tourism ( IPK International, 2016 ). The direct and indirect effects of this increase in visitor numbers seem to cause an increase in annoyance among residents, which could lead to conflicts between tourists, tourism suppliers and inhabitants. The rise of the so-called sharing economy has recently added an additional facet to the discussion. During the past few years various media have reported on incidents, residents protests and the like. However, the humming-up of media may occasionally obscure the difference between actual conflicts perceived in the population and what interested actors in the media make of it. Here, only a careful analysis of the actual situation would help. On the other hand, such conflicts and the discussion about it are neither new nor limited to large cities. Yet, the focus of the discussion has shifted over the last decades: from tourism to developing countries, residents of villages in the Alps which have found themselves into ski-circuses, or greenlanders suffering from the rush of cruise ships. Recently, the discussion has shifted to where a large proportion of tourists go: from and to the European cities. Data from the German Reiseanalyse, an annual survey on holiday travel in Germany ( Schmücker et al. , 2016 ), suggest that in 2014, 31 per cent of the population and 33 per cent of German holiday makers were at home in cities with more than 100,000 inhabitants. In the cities, holiday travel is more than 80 per cent higher than in the countryside.

Tourism generates income and employment for cities, and thanks to tourism the liveliness and liveability in cities is boosted because many shops, services and facilities would not exist without that additional customer base. However, with an eye on the (social) sustainability of city tourism development, it is important to understand whether and how residents’ annoyance comes about and with which measures residents’ attitude could be kept within the margins of their tolerance level. Postma (2013) studied residents’ experiences with tourism in four tourism destinations. He identified three categories of so called “critical encounters”, four levels of annoyance, four levels on tolerance, and three levels of loyalty towards tourism development. The European Tourism Futures Research Network did a pilot study in Riga, Berlin and Amsterdam to investigate the applicability of Postma’s outcomes in an urban context. When this proved valid, the approach was used by the Dutch Centre of Expertise in Leisure, Tourism and Hospitality (CELTH) in a European study on visitor pressure in the city centres of Copenhagen, Berlin, Munich, Amsterdam, Barcelona and Lisbon. A second phase of this study just started in the Flemish cities of art (Antwerp, Bruges, Ghent, Leuven and Mechelen), Tallin and Salzburg. In this study residents were consulted to identify critical encounters and the support for various kinds of strategies to deal with it. Finally, NIT and ETFI conducted a study in Hamburg addressing these issues in 2015/2016.

The domain of tourism impact studies

The study presented here is an example of a tourism impact study. The domain of tourism impact studies has evolved since the second world war, echoing the development of tourism, its characteristics and its perception. During the first phase (1960-1970) the emphasis of tourism impact studies was on the positive economic impacts of tourism. Tourism was mainly seen as a means to strengthen economies. In the 1970s and 1980s, the focus gradually shifted to the negative social, cultural and environmental impacts. This reflected the growing concern of industrialisation, sustainability and quality of life. Ultimately in the 1980s and 1990s the interest of tourism impact studies moved to integrating the economic perspective with the social and environmental one. Tourism had continued to grow, had become more diffuse, and had become more interconnected with societies and economies. The divide in tourism impact studies between economic and social and environmental perspectives, and the emphasis on tourism and destinations as two different worlds impacting upon each other (nicely illustrated in binary terminology such as host and guest) gradually moved to a growing interest into the multidimensional relation between tourism and communities; the process by which tourism is shaped by the interactions between, tourism, host environments, economy and societies; and the meaning of tourism for society ( Postma, 2013 ; Pizam, 1978 ; Jafari, 1990, 2005, 2007 ; Butler, 2004 ; Hudson and Lowe, 2004 ; Ateljevic, 2000 ; Crouch, 1999, 2011 ; Williams, 2009 ; Sherlock, 2001 ). This so called cultural turn in tourism impact studies ( Milne and Ateljevic, 2001 ) opened the door to new research areas raising attention on themes and issues that were largely overlooked or marginalised before ( Causevic and Lynch, 2009 ), for instance, “the multiple readings of local residents while working, living, playing or, in other words, consuming and producing their localities through encounter with tourism” ( Ateljevic, 2000 , pp. 381-382).

According to Deery et al. (2012) , tourism impact studies have grown into a massive and mature field of study covering a wide spectrum of economic, social and environmental dimensions. However, Williams asserts that there is still a lack of understanding of the relationship between tourism and destination communities, both because the number of empirical studies, inconclusive or conflicting results of empirical studies, and a contested conceptual basis ( Williams, 2009 ). Postma (2013) confirms that mainstream tourism impact literature does not offer useful theoretical frameworks for tourism impact studies that focus on the tourism community relations.

Sustainable tourism

Although the notion of sustainable development has led to considerable debate since its introduction which in part is due to its vagueness for concrete action, it is incorporated as an important starting point in contemporary policy and planning worldwide. This also applies to tourism, where the basic ideas of sustainable development were gradually translated into the concept of sustainable tourism development. The first ideas were introduced by Krippendorf (1984) , and they were elaborated in the Brundtland report ( World Commission on Environment and Development, 1987 ) and the United Nations Conference on Environment and Development in Rio de Janeiro in 1992. The ideas presented in the Rio Declaration on Environment and Development and in Agenda 21 guided the World Conference on Sustainable Tourism in Lanzarote in 1995, where the core principles were established ( France, 1997 ; Martin, 1995 ). In line with sustainable development, sustainable tourism development tries to establish a suitable balance between economic, environmental and social aspects of tourism development to guarantee its long-term sustainability ( World Tourism Organisation, 2004 ). The World Tourism Organisation’s core principles of sustainable tourism development are: to improve the quality of life of the host community; to provide high quality experience for visitors; and to maintain the quality of the environment, on which both the host community and the visitors depend ( Mill and Morrison, 2002 ).

Sustainable development and sustainable tourism development do not aim at prosperity and material gains but primarily at well-being and quality of life ( Postma, 2001, 2003 ; Postma and Schilder, 2007 ; Jackson, 1989 ; Burns, 1999 ). In this view residents should be both the starting point and the checkpoint for tourism policy and planning. As the negative perception of tourism affects the way in which residents perceive their quality of community life ( Kim, 2002 ), the long-term sustainability of tourism might be negatively affected by any impacts from tourism causing irritation, annoyance, or anger among local residents. The threshold level at which enthusiasm and support for tourism turns into irritation could be regarded as an indicator of the edge of sustainable development. Therefore, sustainable tourism development requires both greater efforts to incorporate the input of residents in the planning process both in communities exposed to tourism for the first time and in established destinations experiencing increased volumes of tourists ( Burns and Holden, 1997 ; Harrill, 2004 ), as well as to studying host community attitudes and the antecedents of residents’ reactions ( Zhang et al. , 2006 ). As Haywood (1988) states: “Local governments should be more responsible to the local citizens whose lives and communities may be affected by tourism in all its positive and negative manifestations” (in Burns and Holden, 1997 ).

Thus, understanding current and potential conflicts between residents and tourists is an integral part of the sustainable tourism debate. By definition, sustainable tourism development does have an ecological, economic and social dimension. It may be argued that the inclusion of the needs of the inhabitants stimulates the traditional understanding of a tourism market between buyers and sellers: while consumers look for tourism experiences and providers look for business opportunities, the claims of residents are more extensively focussed on an adequate quality of life ( Postma, 2003 ). The larger the interfaces between these three stakeholder groups, the more conflict-free tourism will be able to develop ( Figure 1 ).

For (city) tourism, it seems advisable to define the concept of sustainability in a broad and comprehensive way. Sustainable tourism thus entails “acceptance by the population”, and the population is clearly a part of the social dimension. The participation of the population and securing/increasing the acceptance of tourism is therefore also one of the objectives for Hamburg’s sustainable tourism development. To develop tourism in a sustainable way, in Hamburg as in other cities, the challenge is to bring the quality of life demands of the inhabitants (social dimension) and the quality-of-opportunity requirements of the providers (economic dimension) as far as possible into line.

The case of Hamburg

The aim of this viewpoint paper is to contribute to the conceptualisation of tourism community relations and to clarify the mechanisms of conflict between residents and tourists and to propose a conceptual model to assess the impact of such conflicts on city tourism and to suggest a framework to develop strategies to deal with such conflicts and mitigate negative impacts. This model was developed for a study in Hamburg that addressed the balanced and sustainable growth of tourism in the city. Hamburg is one of the most popular city destinations in Germany. The city, located in the north of the country, is faced with a gradual increase of visitor numbers, especially during the past few years. Internal papers of Hamburg’s Destination Management Organisation, Hamburg Tourismus ( HHT, 2015 ), show that between 2001 and 2015, the number of overnight stays in Hamburg increased with over 150 per cent, which is more than, for example, Barcelona (+112 per cent), Venice (+120 per cent), Amsterdam (+54 per cent) and Berlin (+153 per cent). Although the negative implications of tourism are not as visible as in some other European cities, critiques are getting louder in selected parts of the city, as shown by a regular resident monitoring implemented by HHT. Strategies to distribute tourism flows in time and space could help to prevent or to counteract. The study, commissioned by HHT, is an attempt to contribute to the understanding of the mechanisms behind and the nature of possible conflicts between tourists, tourism suppliers and residents and the way they can be managed and controlled, for example, by making use of data generated by social media. Based on desk research, a conceptual model was developed which describes the drivers of conflict between residents and visitors. Building blocks of the model are visitors and their attributes, residents and their attributes, conflict mechanisms and areas of conflict between both parties, and indicators of quality and quantity of tourist facilities. Subsequently the model was used to analyse the situation in Hamburg.

Conflict drivers and irritation factors

To develop a better understanding of the mechanism of conflict between tourists, tourism suppliers and residents, desk research was conducted into potential areas of conflict between locals and tourists, which factors would characterize particularly vulnerable residents and particularly disturbing locals, and what would be strategic options to manage and control the (occurrence) of such conflicts.

There is danger that for a focus on only negative aspects in the interaction between tourists and locals would cause bias. Therefore, it should be stressed that – for the destination – tourism is not an end in itself, but primarily an economic and, second, a social potential. Economically, tourism usually has positive effects for the inhabitants, mainly through the money flowing in from the outside, which tourists spend in the city and for the city. This money leads to tourist turnover, which is reflected in income. This income can be in the form of salaries, income from self-employment, company profits, or from the leasing or sale of land, buildings or flats. Indirectly, tourism revenues also contribute to the creation and maintenance of infrastructures and (tourist) offers which can also be used by residents. This applies to most cultural institutions (from the opera to the zoo), but also for public transport offers, gastronomy, etc. Socially, tourism can lead to desirable effects in the destination as well. This includes the (simple) encounter with others (provided they are “encounters on eye”), a general stimulation and a social enrichment and liveliness of the city.

It is especially in the economic dimension, where the dilemma to which involvement with tourism could sometimes lead, becomes clear. If an apartment is rented as a holiday home rather than as a permanent living space, because the landlord will get a higher income (in some cases at lower costs and lower risk), this is undoubtedly disadvantageous for the regular tenants and land-lords of houses undoubtedly advantageous. An assessment of this dilemma is therefore not only possible based on (short-term) economic considerations, but must consider long-term and non-economic aspects. The understanding of such balancing processes and the existence of potentially positive and negative effects of tourism is fundamental to the overall further consideration.

The study of the interaction between tourists and the residents of the destination has already shown a longer academic tradition (see Harrill, 2004 ; Zhang et al. , 2006 ; Andereck et al. , 2005 ; Vargas-Sánchez et al. , 2008 ). However, Postma notes: “A review of the literature concerning residents’ attitude toward tourism revealed an absence of research exploring factors that specifically contribute or cause irritation development, with the exception of Doxey’s (1975) article and the authors who quote him or elaborated and described his model in more detail, such as Murphy (1985) , Fridgen (1991) , Ryan (1991) , Matthieson and Wall (1982) , Wall and Mathieson (2006) , Vanderwerf (2008) and Milligan (1989) . Based on empirical investigations he designed an irritation index, describing four stages in the development of irritation: euphoria, apathy, annoyance, and antagonism. The model of this “irridex” describes the changing attitude of residents ensuing from reciprocal impacts between tourists and residents and varying degrees of compatibility between the residents and outsiders. According to Doxey (1975) irritation differs from person to person: it is affected by various personal characteristics and various characteristics of the tourist destination.

Much literature is devoted to investigating the positive and negative impacts of tourism. Rátz and Puczkó (2002) have summarised these impacts. This overview indicates that irritation might develop along four dimensions: population impacts, transformation of the labour market, changes in community characteristics and community structure, impacts at the individual and family level, and impacts on the natural and cultural resources ( Postma, 2013 , p. 25) lists the socio-cultural impacts of tourism, which is the focus of this study.

Model construction

The results of the desk research were put together in a conceptual framework to conceptualise the complex issue under study, that has largely been unexplored in this way so far. The model helps to identify and visualise possible irritation points on the part of the inhabitants and their (possibly disturbing) interaction with visitors. Just like other models, this conceptual model is a schematic abstraction of reality. It takes individual, relevant aspects into account, while other aspects might be neglected. The intention is not to be complete, but to visualise reality and identify relevant issues. So, the model presented here is abstract and descriptive. It is not a scientific structure or measurement model from which statistical hypotheses can be derived, but rather a “thinking structure” for further investigation.

The overview of positive and negative possible effects of tourism on the social dimension of tourism by Rátz and Puczkó (2002) is a first starting point for the modelling process. A second starting point is the Tourist Destination Model as developed by NIT, which has been evolved throughout many years ( Schmücker, 2011 ). Further starting points for the modelling process were reports and survey results from cities in which there have already been clearly observed annoyances among the local population because of tourism. A particularly prominent example is Barcelona (even a film was recorded), but also cities like Venice, Vienna, Amsterdam or Berlin are not only reported in the local, national and international press.

For the elaboration of a conceptual model, it is first necessary to clarify which content should be taken into account. First, the key actors: tourists and their characteristics, and residents and their characteristics. Second, attributes of the tourist product because their quantity and quality of the tourism opportunity spectrum are the prerequisite for tourists to visit the city at all. This includes both the specific tourist offer (hotel industry, semi-professional, private and sharing offers, MICE offers) as well as the offers which are aimed at both tourists and locals (cultural offers, gastronomy, mobility, etc.).

With these building blocks, the essential conflict mechanisms and concrete fields of conflict can be described, as well as strategic courses of action against the objectives of sustainable tourism development. The model is displayed in Figure 2 .

The model shows the interaction between local residents and tourists, its conditions and consequences. Conditioned by the attributes of both parties, and of conflict mechanisms between the two (sensitivity to) areas of conflict do arise. The model helps to understand how this process works. Based on intensive data collection and data analysis the model was applied in Hamburg to make an analysis of the distribution in time and space of overnight stay accommodation, events and visitor flows, the annoyance tourism caused among local residents, and the strategies that could be taken to manage tourism flows in a sustainable way. In the following sections the components of the model will be described in detail.

Relevant characteristics of tourists

“Adaptivity”: the ability of tourists to adapt to the people in the destination and their habits. “Adaptive” behaviour can be divided into general and specific. General adaptive behaviour is at work in many cultures, for example, general friendliness and restraint. Specific adaptive behaviour can include behaviour accepted by some cultures, but by others (e.g. preparing food in the hotel room or visiting sacred buildings with/without head cover). The larger the cultural distance between the locals and the tourists, the greater their adaptiveness should be to avoid conflicts.

“Tourism culture”: it seems plausible to attribute a greater potential for irritation to tourists with certain behaviours, travel situations or group sizes than others. In particular tourist trips that are mainly aimed at enjoyment in the city. Eye-catching examples can be actions such as bachelor parties, visits to sporting events and the like. In connection with conspicuous behaviour (e.g. shouting, drinking, etc.) the irritation potential increases significantly. This behaviour is often different from home. “[It] can be labelled as a tourist culture, a subset of behavioural patterns and values that tend to emerge only when the visitors are travelling but which, when viewed by local people in receiving areas, project a false and misleading image of the visitors and the societies they represent” ( Postma, 2013 , p. 144). Group size belongs to the same category: it can be assumed that tourists coming in (large) groups, tend to generate irritation easier than individual tourists.

Other demographic, socio-cultural and personal characteristics: of course there are other characteristics of tourists that could cause irritation or annoyance. However, it seems plausible to consider, for example, purely demographic attributes (such as age, gender, household type and size) as background variables rather than primary features in the model. The same applies to other attributes that contribute to the adaptivity, to socio-cultural attributes (nationality, ethnicity, language, attitude to women), to socio-economic attributes (such as income and consumption patterns) and to the regional origin of the visitors. Regardless of the adaptivity, the regional origin can be a relevant driver of irritation. Even if tourists behave in a very friendly and reserved manner, their appearance may be irritating some inhabitants due to specific characteristics (such as skin colour, language/dialect or clothing). Even if there is no objective cause for complaint, strangeness as such can cause irritation.

It is important to emphasise that these background variables are not directly affecting behaviour in a direct way. Stephen Williams (2009 , p. 144) comments: “The behaviour patterns of visitors often divert from their socio-cultural norms and do not accurately represent the host societies from which they originate, with conspicuous increases in levels of expenditure and consumption, or adoption of activities that might be on the margins pf social acceptability at home (e.g. drinking, overeating, gambling, atypical dress codes, nudity, semi nudity)”.

Relevant characteristics of inhabitants

On the part of the inhabitants, a fairly large number of potential attributes can be identified in the literature which could influence their attitude towards the tourists.

demographic characteristics: gender, age, education;

socio-economic characteristics: employment and income situation, housing situation (place of residence, duration of residence, property/rented), personal relationship to the city/district, attitude to economic growth;

socio-psychological and socio-cultural characteristics: orientation (new vs traditional) and lifestyle, origin (born and raised or migrant, born in city or country), personality traits such as self-image and group identity; and

tourism-specific characteristics: knowledge about tourism and its effects, income dependence from tourism, spatial distance to tourist hotspots and actual contacts with tourists, involvement in decisions about tourism development.

Harrill (2004) , Zhang et al. (2006) , Andereck et al. (2005) , Vargas-Sánchez et al. (2008) , Faulkner and Tideswell (1997) .

Investigations into residents’ perceptions of tourism have been approached from several perspectives: the balance between positive and negative perceived impacts (social exchange theory), the shared social representations of tourism with other community members (social representations theory; Moscovici, 1981, 1983, 1984, 1988 ), the speed and intensity of tourism growth, especially in the early phases of tourism development (social disruption theory; England and Albrecht, 1984 ; Kang, Long and Perdue, 1996 ) and increasing investments and associated commodification and destruction of the landscape and idyll (theory of creative destruction ( Mitchell, 1998 )).

“Cultural Distance” as a collective term for the cultural difference between tourists and locals. It can take the form of a lack of adaptivity, appearance in (large) groups, disturbing behaviour on the part of the tourists, and a sensitivity on the part of the local (which has its roots in the factors mentioned above) Altogether, cultural distance can be understood as the socio-cultural difference between locals and tourists. The term goes back to Stephen Williams (2009) : the larger the cultural distance, the greater the potential for conflict.

Spatial and temporal distribution. This refers to the crowding (the sheer number of tourists) or the concentration of tourists in space and/or time. This crowding can lead to irritation irrespective of “cultural distance”: even with the highest degree of “correct behaviour” by highly adaptive individual tourists without further disturbing characteristics, crowding can occur.

Each aspect can potentially cause irritation on its own, but in combination the effects become potentially stronger.

Concrete fields of conflict

The components of the model described in the previous section point at conflicts in a more abstract way (which characteristics and features could lead to conflicts and how does this work in general?). This section will focus on the actual (concrete) conflict fields that can occur. The basis for the collection of these fields of conflict is derived from the illustrated antecedents, yet it is mainly about what has been reported by destinations (especially big cities) and survey results.

The numerous arguments, which are mentioned in the literature, but above all in reports and interviews on areas of conflict, can be divided into possible direct restrictions (those which are perceived at the moment of occurrence) and indirect consequences. Table I shows the concrete fields of conflict that were identified in an overview. The fields of conflict are characterised as “potential”, because it is a structured collection without any further statement as to whether and how far these are relevant to Hamburg. Moreover, it is not an overview of fears by the authors, but about fears of local residents as they experienced in their daily lives (e.g. the authors do not believe that the employment of people with an immigration background is a negative consequence of tourism).

It becomes clear that the number of possible conflict fields is large and their structure heterogeneous and not always clearly assignable. In addition, specific developments do not only impact upon the direct interests of the local residents, but also upon the relations between different tourist actors and economic groups. For example, it is not clear yet how the renting through sharing portals has an impact upon the price development in the hotel industry ( Zervas et al. , 2016 ), and how much “sharing” (as opposed to businesses) there really is in the sharing economy ( O’Neill and Ouyang, 2016 ; European Commission, 2016 ).

In the case of Hamburg, conflicts arose from both temporary or seasonal and permanent sources of conflict. Examples of temporary sources of conflict can be large events, but also groups of cruise passengers who flood the city during daytime in the summer season. In the Hamburg case, there are few very large events in the course of the year which can be conflicting with the interests of the inhabitants, although mitigation and management measures have been taken. But also, a permanent area of conflict can be found in the concrete case, e.g. the misbehaviour of groups of drunken or otherwise intoxicated young males (mostly), entering the red-light district around Reeperbahn.

Strategic approaches

For the residents: to secure and increase the acceptance of tourism.

For tourists and touristic providers: to secure and increase tourist value creation.

Against this background, it is important to ask which measures are appropriate to achieve these goals (see also Figure 1 ).

Although this project is primarily aimed at the equalisation of tourism flows, further strategies and actions are conceivable that mitigate the perceived negative effects of tourism.

improved spatial distribution of visitors (Spreading visitors around the city and beyond);

better time distribution of visitors (time-based rerouting);

regulation (regulation);

incentives through creating itineraries;

improved audience segmentation (visitor segmentation);

making the benefit of the inhabitants clearer (make residents benefit from the visitor economy);

tourist offers with benefits for the inhabitants (create city experiences);

communicating with and involving local stakeholders;

communication approaches towards visitors (communicating with and involving visitors); and

improvement of infrastructure (Improve city infrastructure and facilities).

Each of those strategies is linked to specific actions (CELTH, 2016).

Conclusions and discussion

Currently tourism is on the rise and city tourism has a large share in this increase. The UN World Tourism Organisation anticipates a further growth during the years to come. Emerging economies play a major role in the vast increase of tourism. Driven by an increase of wealth the middle classes in these economies are discovering the world and for example, in Europe it is evident that this is causing a growing level of annoyance among residents of (urban) destinations. Because of the rise of international tourism it is likely that the situation will worsen if visitor flows are not managed properly. This requires a thorough understanding of the forces, the conditions and mechanisms at work. This paper is an attempt to contribute to this understanding by means of a case study in Hamburg and the construction of a model that could help to manage visitor flows and anticipate possible effects of potential measures. Future studies are needed to refine the model.

The model developed in this paper is a conceptual model. It is based upon desk research on and expert interviews in various European cities and a literature review. As a conceptual model, it’s main value lies in sorting and arranging the many possible aspects of visitor pressure occurring in city tourism. It can be (and in the case of Hamburg has been) used as a working structure to assess possible fields of conflict arising from the conflict mechanisms contained in the model. Furthermore, it is intended to help clarify the relation between stakeholders (i. e. the residents, the tourism suppliers and the visitors) and their respective objectives. Being conceptual, however, it is not intended to serve as a structural model delivering graphical representations of hypotheses or structural relationships.

Obviously, in order to assess the situation in a specific destination, the conceptual model is only one basic tool. For concrete applications, two more steps need to be taken, building on the model.

First, the concrete fields of conflict have to be identified. These fields will differ in their importance from city to city and from destination to destination. While in one city, cruise tourists flooding the city centre impose problems, it might be stag parties or beer bikes in another destination and the rise of housing prices because of increasing numbers of Airbnbs in the next. Typically, public discussion about “visitor pressure” or “overtourism” starts with one publicly visible field of conflict. The conceptual model can then help to embed this problem into a larger framework and thus prevent it from being discussed in isolation. In other cases, cities want to assess their current status and vulnerability to unbalanced tourism development. Then, the conceptual model can help to get a more holistic view to the problem.

Second, indicators and metrics have to be applied to the concrete fields of conflict. If, e.g. crowding is identified as a field of conflict, then indicators and measurement for crowding need to be found. These can be visitor counts or usage data from apps and mobile phones. If shared accommodation seems to be the problem, then the number of hosts, listings and overnights at Airbnb and other platforms can be appropriate metrics. A major drawback, however, in the current situation seems to be the lack of comparable metrics. Each city and destination has to rely on its own assessment of “how much is too much”. In terms of overnight stays in hotels, a reasonably well maintained European database exists (TourMIS). Furthermore, some methodological approaches to assess some fields of visitor pressure have been published by McElroy (2006) or Boley et al. (2014) . However, comparable indicators and metrics specific for the field of visitor pressure are not at hand at the moment.

Third, taking action and implementing measures is a logical consequence in cases where the assessment phase has shown problems of visitor pressure. These actions might be in the fields of regulation, visitor management, pricing or communication. The model does not give suggestions as to which actions to take. It can work, however, as a guideline for the strategic objectives of such actions, namely to secure (and possibly increase) the economic value from tourism for the city and its tourism suppliers on the one hand and to secure (and possibly increase) tourism acceptance on the residents’ side on the other hand.

economic impact of tourism in a destination

Quality of life: equal demands on tourism

economic impact of tourism in a destination

Conceptual model of conflict drivers and irritation factors

Potential areas of conflict

Source: Adapted from Postma (2013)

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Acknowledgements

© Albert Postma and Dirk Schmuecker. Published in the Journal of Tourism Futures . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

Corresponding author

About the authors.

Albert Postma is a Professor of Applied Sciences at the European Tourism Futures Institute, Stenden University of Applied Sciences, Leeuwarden, The Netherlands.

Dirk Schmuecker is the Head of Research at the NIT Institute for Tourism Research in Northern Europe, Kiel, Germany.

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Economic Contribution and SDG

As UN custodian, the UNWTO Department of Statistics compiles data on the Sustainable Development Goals indicators 8.9.1 and 12.b.1, included in the Global Indicator Framework . Data collection started in 2019 and provides data from 2008 onwards, the latest update took place on 29 August 2023.   

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Tourism in Europe Recovers Causing Delight and Dismay

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Miguel Macias

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The front gate of San Isidoro School, in Barrio de Santa Cruz.

During the COVID-19 pandemic, European cities experienced a dramatic drop in tourism. Now that visitors have returned in force, locals have mixed feelings. Many cities rely on tourism money, but throngs of people and the demand for short-term rentals can change the very places people are clamoring to visit. We hear about how Seville, Spain is experiencing that tension.

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It Just Got Easier to Visit a Vanishing Glacier. Is That a Good Thing?

“Last-chance tourists” are visiting the melting Mer de Glace in Chamonix, France, in droves. A just-opened lift should make that easier. But some worry tourism is only making the problem worse.

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By Paige McClanahan

Paige McClanahan lived in the French Alps for five years and has visited the Mer de Glace many times.

  • March 3, 2024

Claude Folmer was about 40 years old the first time he visited the Mer de Glace , the largest glacier in the French Alps. He remembers enjoying the panoramic view from the observation platform, then taking a short hike down to the ice, where he toured the ice cave that’s carved into the glacier’s surface.

Four decades later, on a mild, sunny morning in early February, Mr. Folmer — now 80 and accompanied by his adult son, Alain — was taking in a view of the same glacier. He was shocked by the change.

“The difference is enormous. The glacier used to be just below,” Mr. Folmer said, gesturing to the gravel-covered river of ice that now lies more than 800 vertical feet below the viewing platform. “For someone who doesn’t know how it used to be, it’s a beautiful scene. But when you know the difference, it really is sad,” he said.

Mr. Folmer, who lives near the French city of Albertville, traveled by train to Chamonix, the mountain town from which visitors can easily visit the glacier. He and his son happened to be there on the opening day of a gondola that transports visitors between the viewing platform and the ice below. The Folmers weren’t aware of the new lift — which replaces an older gondola built in 1988 — but when they learned of the news, neither was pleased.

“At some point, you have to leave the glacier alone,” the younger Mr. Folmer said. “There’s big machinery being installed. Where will it stop?”

Beneath a blue sky, dozens of tourists in jackets and hats gather on an observation deck that overlooks a glacier and snowy, rugged mountains.

It’s a question that many travelers are asking themselves, as climate change threatens a growing number of tourist destinations — from glaciers to coral reefs, ski slopes to low-lying islands. For thousands of years, humans have raced to be the first to scale a peak, cross a frontier, or document a new species or landscape.

Now, in some cases, we’re racing to be the last.

The term last-chance tourism, which has gained traction in the past two decades, describes the impulse to visit threatened places before they disappear. Studies have found that the appeal of the disappearing can be a powerful motivator. But in many cases, the presence of tourists at a fragile site can accelerate the place’s demise.

There is some evidence that a visit to a threatened place can inspire meaningful behavioral change in visitors, potentially helping to offset the negative impacts of a trip. But research is still in its early stages, and results are mixed.

In a place like Chamonix — where tourism is the mainstay of the economy, and where climate change is already having palpable effects on tourist offerings — such tensions are playing out in real time. The shift to a new way of interacting with the landscape may be slow to come, as many jobs — as well as tourist habits — are built into the old way of doing things. But some are already pioneering a new approach, and with the effects of global warming accelerating, change will have to come quickly.

A new gondola in Chamonix

The Mer de Glace, or Sea of Ice, which once reached from the slopes of Mont Blanc all the way to the valley floor in Chamonix, has been attracting visitors for nearly three centuries. Mark Twain, Mary Shelley and Alexandre Dumas were among the early tourists who visited Montenvers, the site of the Mer de Glace overlook, and helped spread the glacier’s fame.

These days, in a typical year, about half a million people visit Montenvers, said Damien Girardier, the head of the site, which is owned by the city of Chamonix and managed by the Compagnie du Mont Blanc . Most visitors arrive via the red cogwheel train that links the viewing platform to the middle of Chamonix, though some arrive on foot — or ski in. Every year, about 80,000 people ski down the Mer de Glace, a classic backcountry Alpine descent called “la Vallée Blanche” (the White Valley) that finishes near the glacier’s terminus below the viewing platform. They then either hike up to Montenvers with their skis — or they take the lift.

The new lift, which opened the first weekend of February, was built about a quarter of a mile up the valley from the 1988 lift, anticipating the glacier’s further retreat. In the 35 years since that old lift was constructed, the glacier has drawn back so much that about 600 steps had to be installed between the bottom of the lift and the surface of the ice. That made it harder for older adults and anyone with reduced mobility to reach the glacier from Montenvers. It also made for a long uphill slog for tired Vallée Blanche skiers at the end of a long day.

Mr. Girardier said the new lift, which cost 20 million euros, or about $21.6 million, was built in accordance with strict environmental controls. Its colors were chosen to blend into the landscape, a special cable was used to minimize noise, and most of the building material was transported to the site by train. The gondola was also constructed in a way that allows future generations to dismantle the structure easily — should they want to.

“In 15 years, the end of the glacier will probably have reached the lift,” Mr. Girardier said, “but it doesn’t matter. When you go to Iceland, people walk for an hour to get to the glacier. For us, it’ll be the same.”

The new lift is part of a bigger project that will also include the construction of a new educational exhibit, called the Glaciorium, about glaciers and climate change. The center is scheduled to open late this year, though some of the funding has yet to be confirmed.

In the meantime, day-trippers can visit the ice cave, which has been revamped with a new design and information displays, while skiers will be able to take the lift to end a day of skiing on the Vallée Blanche, an important source of work for Chamonix’s guiding community.

Julien Ravanello, a mountain guide with the Compagnie des Guides de Chamonix , leads about 20 Vallée Blanche trips per season. He said the new lift would make things more straightforward on a route that — with a guide — is within the grasp of most average skiers.

“Above all, we like it because it shows people the universe of the high mountains,” said Mr. Ravanello, who added that such an accessible glacial ski descent “is almost unique in the world.”

Capucine Pénicaud, a global health consultant and yoga instructor who lives in Chamonix, skis the Vallée Blanche once or twice a year.

“It’s a place that I love and at the same time makes me very sad,” Ms. Pénicaud said of the glacier, adding that her visits to the Mer de Glace almost always move her to tears. “I think there’s a real opportunity in going there, because you can understand global warming — and feel it,” she said.

But Ms. Pénicaud isn’t happy about the new lift. She said she didn’t mind the 45-minute hike up to the viewing platform at the end of a Vallée Blanche run. Also, the concrete for the project was mixed in the Chamonix Valley, near where she lives, then transported by helicopter to the site. “For the past two years, I have seen helicopters bringing concrete up here every half-hour. How much petrol? How much pollution? How much concrete?” she said.

The Compagnie du Mont Blanc confirmed that concrete for the project had been transported by helicopter, but added that the train had been prioritized for the transport of other building materials “for ecological reasons as well as financial ones.”

Last-chance tourism

Can a visit to such a site prompt a change in behavior?

Researchers at the Mer de Glace have found that exposure to its fragile environment can inspire people to adopt environmentally friendly behavior — or at least to declare their intention to do so in a questionnaire.

A 2020 survey of summer visitors to the glacier found that 80 percent said they would “try to learn more about the environment and how to protect it.” Another 82 percent said they would stop visiting glaciers if doing so would protect them, while 77 percent said they would reduce their water and energy consumption.

More research would be required to see whether tourists follow through. But drawing on the survey results, the researchers concluded that using last-chance tourism as an opportunity to educate visitors about climate change — while also engaging people’s emotions and showing them concrete steps they can take to protect the environment — could maximize the environmental benefits of this kind of tourism.

Others are skeptical. Karla Boluk, a professor in the department of recreation and leisure studies at the University of Waterloo, in Ontario, pointed to her research that found that a majority of last-chance tourists at two Canadian sites were unwilling to pay for carbon offsets.

“There’s an ethical paradox of last-chance tourism, and it involves the moral question of whether travelers acknowledge and respond to the harm they promote,” Dr. Boluk said.

“It’s important for us to engage in thoughtful decision-making and careful research to ensure that we are not contributing to the collapse of these places, exacerbating the issues caused by climate change,” she said, adding that tourist “destinations” are also places locals call home.

A different approach

Elsewhere in the Chamonix Valley, the staff of the Research Center for Alpine Ecosystems is working to understand the potential impact of a different approach to nature tourism: citizen science.

Colin Van Reeth, an ecologist and the manager of citizen science programs at the center, described outings that he and his colleagues have organized on which participants are invited to stop at a pond during a hike to document the frogs they see. “For us, it’s a question of getting tourists involved in naturalist observations of the mountains,” Dr. Van Reeth said. Their hypothesis is that by strengthening people’s sense of connection with the natural environment, they might be able to inspire people to make lasting and meaningful changes to their behavior.

“It’s about identifying those small steps, those small stages of transformation,” Dr. Van Reeth said.

Some don’t need a nudge.

Standing at the overlook, Mr. Folmer, the 80-year-old visitor, said that he gave up flying two years ago out of concern for the climate, and that he makes local trips on his bicycle when he can.

“I don’t blame people who fly occasionally when they go on vacation,” Mr. Folmer said, looking down at the glacier. “But when you see this, you think each of us can make a little personal effort.”

Paige McClanahan, a regular contributor to the Travel section, is the author of “The New Tourist: Waking Up to the Power and Perils of Travel,” forthcoming from Scribner on June 18.

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

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ORIGINAL RESEARCH article

Urban professionals' restorative tourism: exploring the role of perceived environmental restorativeness, push and pull motivations and destination attributes on.

Xianyao Ding

  • 1 Xihua University, Chengdu, China
  • 2 Dong-Eui University, Busan, Busan, Republic of Korea

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Urban professionals often seek respite from their daily routines through restorative tourism, driven by a complex interplay of motivations that include both internal "push" factors and external "pull" factors. This study investigates the intricate relationship between the perceived environmental restorativeness of tourist destinations and the expectations of urban professionals engaging in restorative tourism. Furthermore, it examines how push and pull motivations mediate this relationship while also considering the moderating effect of destination attributes. The multiple regression analyses on the survey data collected from 221 urban professionals with restorative tourism experiences provided quantitative evidence regarding the hypothesized relationships among perceived environmental restorativeness, push and pull motivations, destination attributes, and tourism expectations. The results showed that perceived environmental restorativeness has a positive effect on urban professionals' tourism expectations; urban professionals' pull motivation and push motivation each play a mediating role between perceived environmental restorativeness and tourist expectations; and restorative tourism destination attributes have a moderating effect between perceived environmental restorativeness and push motivation, as well as the relationship between perceived environmental restorativeness and pull motivation. This study provides essential theoretical contributions to restorative tourism and practical implications when designing restorative tourism destinations that target urban professionals.

Keywords: Urban professionals, restorative tourism, perceived environmental restorativeness, Push and pull motivations, destination attributes, and tourism expectations

Received: 13 Sep 2023; Accepted: 08 Mar 2024.

Copyright: © 2024 Ding and Xu. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) . The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

* Correspondence: Jiajun Xu, Dong-Eui University, Busan, 614-714, Busan, Republic of Korea

Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.

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Kyoto’s picturesque geisha district fights back against over-tourism with keep-out signs

FILE - Kimono-clad "geiko" and "maiko" professional entertainers arrive for a ceremony to start this year's business in Kyoto, western Japan, on Jan. 7, 2020. Japan’s ancient capital of Kyoto, long a popular destination for tourists, will be closing off some private-property alleys in its famous geisha district, as complaints grow about misbehaving visitors. (Kyodo News via AP, File)

FILE - Kimono-clad “geiko” and “maiko” professional entertainers arrive for a ceremony to start this year’s business in Kyoto, western Japan, on Jan. 7, 2020. Japan’s ancient capital of Kyoto, long a popular destination for tourists, will be closing off some private-property alleys in its famous geisha district, as complaints grow about misbehaving visitors. (Kyodo News via AP, File)

People walk along a street in Gion area, Kyoto, western Japan on Sept. 7, 2022. Japan’s ancient capital of Kyoto, long a popular destination for tourists, will be closing off some private-property alleys in its famous geisha district, as complaints grow about misbehaving visitors. (Kyodo News via AP)

Maiko, or apprentice geiko, pose for photos ahead of the upcoming Gion Odori dance performance in Kyoto, western Japan, on Aug. 31, 2023. Japan’s ancient capital of Kyoto, long a popular destination for tourists, will be closing off some private-property alleys in its famous geisha district, as complaints grow about misbehaving visitors. (Kyodo News via AP)

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TOKYO (AP) — Japan’s ancient capital of Kyoto, long a popular destination for tourists, is closing off some private-property alleys in its famous geisha district because of complaints about misbehaving visitors.

Tourists crowd the narrow, quaint streets of the area called Gion, often following tour guides who show people around and lecture for long hours, local district official Isokazu Ota said Friday.

“We are going to put up signs in April that tell tourists to stay out of our private streets,” he told The Associated Press.

A sign will say in both Japanese and English: “This is a private road, so you are not allowed to drive through it,” although the keep-out warning is aimed mainly at pedestrians, not cars, as the Japanese wording refers to generically “passing through.”

“There will be a fine of 10,000 yen,” the sign adds, which comes to about $70 under recent currency conversion rates.

The ban covers just several blocks of Gion. The district’s public streets will remain open to tourists, so the area and the rest of Kyoto will still be teeming with visitors, both from Japan and around the world.

Hong Kong's Finance Secretary Paul Chan delivers the annual budget address at the Legislative Council in Hong Kong, Wednesday, Feb. 28, 2024. (AP Photo/Louise Delmotte)

Gion’s outrage highlights brewing resentment at what many people feel is “over-tourism,” even though the Japanese economy depends more than ever on tourism revenue to sustain growth.

People walk along a street in Gion area, Kyoto, western Japan on Sept. 7, 2022. Japan’s ancient capital of Kyoto, long a popular destination for tourists, will be closing off some private-property alleys in its famous geisha district, as complaints grow about misbehaving visitors. (Kyodo News via AP)

The district of winding alleyways is known for picturesque teahouses, where geisha and their maiko apprentices, wearing fancy kimono and hair ornaments, perform in dance and music.

In a city known for gorgeous temples and gardens, Gion is one of its most scenic and historical spots. Tourists, armed with cameras, like to wander around Gion, hoping to catch the women on their way to dance class or a fancy dinner party.

Complaints about over-zealous tourists began bubbling years ago, though the discontent cooled when the coronavirus pandemic brought a lull in tourism. Now, visitors are back with a frenzy.

Overseas tourist traffic to Japan is rebounding to pre-pandemic levels.

Maiko, or apprentice geiko, pose for photos ahead of the upcoming Gion Odori dance performance in Kyoto, western Japan, on Aug. 31, 2023. (Kyodo News via AP)

Maiko, or apprentice geiko, pose for photos ahead of the upcoming Gion Odori dance performance in Kyoto, western Japan, on Aug. 31, 2023. (Kyodo News via AP)

More than 22 million visitors came to Japan last year, eager to take in sushi, electronic gadgetry and the splendors of nature like Mount Fuji and the beaches of Okinawa. In 2019, incoming travel totaled more than 31 million people, and this year’s number could approach or even overtake that, experts say.

It’s been too much for many residents of Gion. Their local council summarized the less than eager sentiments a few months ago by proclaiming: “Kyoto is not a theme park.”

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Look: Fair winds boost cruise tourism in the Philippines

Asia philippines.

How the country won ‘Asia’s Best Cruise Destination’ award

Cruise ships Manila

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Manila: There was a time, not so long ago, when port calls by luxury cruise ships were unheard of here. The reasons: instability, insurgency, infrastructure (lack of it).

The times, Bob Dylan once wrote, they are a-changing.

On Monday, February 26, 2024, Pier 15 at Manila South Harbour welcomed the simultaneous docking of two international cruise ships. It marked a significant influx of about 4,000 foreign tourists exploring local destinations.

The back-to-back port calls highlight how the Asian country has been emerging as a notable destination for cruise tourism.

A number of trends are shaping this sector. The country's cruise tourism is on a roll – the country had 128 cruise calls in 33 destinations in 2023.

This 2024, at least 132 cruise ships are expected to call ports of the Philippine islands bringing in about 100,000 passengers on board, according to the Philippine Ports Authority (PPA).

After calling Manila's port, the cruise ship Norwegian Jewel (photo) sailed towards the Port of Currimao, in northern Philippines, while MV Westerdam charted a course for the central resort island of Boracay.

The dual cruise port call in Manila marked the second return of MV Westerdam (owned by Holland America) to the Philippines this year – while MV Norwegian Jewel (owned by Norwegian Cruise Line) also made a successful comeback, according to the Philippine Ports Authority (PPA).

The world-famous Boracay Island, in central Philippines, has already been visited by three international cruise ships in the first two months of 2024.

It is reaping the government’s whole-of-nation strategy to boost visitor arrivals, generate jobs, capitalise on its linkages with neighbours and showcase the country’s unique offerings.

MV Westerdam  (1,970 passengers) arrived in Manila from Taiwan, while MV Norwegian Jewel (2,376 passengers)  made a prior stop at the Port of Princesa, in Palawan, on the country’s west on February 24.

Cruise liner Crystal Symphony

Tourism support, traffic plan

The upward trajectory of cruise tourism is driven by increasing demand, infrastructure development, and collaborations promoting the country as a premier destination.

In anticipation of the organised and seamless arrival of the two cruise ships, the PPA primed their staff and worked with the Port Police to ensure the safety and security of passengers at the pier.

Meanwhile, 50 tourist buses were stationed at the pier to facilitate tourist exploration of Manila and Tagaytay.

Tourist buses

A traffic flow plan was devised, with separate lanes for bus tour passengers and those opting for a Do-It-Yourself Tour.

5 cruise terminals to be developed

To boost cruise tourism infrastructure this year, and in order to keep the country's best destination in Asia title, the PPA said it is developing at least five cruise terminals – in Boracay, Coron, Camiguin, Siargao and Puerto Galera – all of which are considered tourist hotbeds.

There has been a growing interest in cruise tourism in the Philippines, both among international travelers and domestic tourists.

The country’s natural coastal landscapes, pristine beaches, and rich cultural heritage make it an attractive destination for cruise travelers.

CMV Vasco de Gama Philippines German tourists

7,600 islands

The Philippines, an archipelago of more than 7,600 islands, offers an alternative to international cruise lines diversifying their routes – to include more destinations within the islands.

Traditionally popular ports of call such as Manila, Boracay, and Palawan continue to be frequented – but there's also an exploration of lesser-known ports like, Laoag, Matnog, Siargao, Davao, and Cebu.

'Asia's Best Cruise Destination' award

Last year, the Philippines was honored as "Asia’s Best Cruise Destination" at the esteemed World Cruise Awards for the first time, solidifying its status as a rising star in global cruise and tourism.

The World Cruise Awards, affiliated with the renowned World Travel Awards, annually recognises excellence in the cruise industry, drawing anticipation from cruise professionals, media, and consumers worldwide.

Cruise ship Boracay

Competing for the award were India, Japan, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, and Vietnam.

As of October 16, 2023, the Philippines was projected to have 128 cruise calls in 33 destinations, welcoming an estimated 101,000 passengers and 50,000 crew members.

Christina Garcia Frasco, Secretary of the Philippine Department of Tourism (DOT), cited the country's natural beauty, beaches, marine life, and hospitality, offering diverse cruise experiences.

Notable cruise ships that visited include the Seaborne Encore, Silver Shadow, MSC Poesia, Queen Elizabeth, Norwegian Jewel, Coral Adventure, MS Seven Seas Explorer, MS Star Breeze, Silver Whisper, Oceania Cruises, Aidabella, and the Blue Dream Cruise on its maiden voyage to the Philippines.

With Boracay, Palawan, and Siargao recently receiving Conde Nast Travel’s Best Islands in Asia Award, the recognition as Asia’s Best Cruise Destination further cements the Philippines as a must-visit for cruise enthusiasts.

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Economic impact

This award validates the tourism industry's push, highlighting lesser-known destinations in the future. Secretary Frasco expressed gratitude for the recognition, highlighting the global preference for the country's island destinations.

She credited shared efforts by the government and the private sector for this success, pledging to maintain and enhance the Philippines’ reputation as an outstanding cruise destination.

The Cruise ship 'Seabourn Encore' docked at the Puerto Princesa City seaport.

Partnerships for sustainability

The government, tourism authorities, and local communities are actively collaborating with cruise lines and international organisations to promote the Philippines as a cruise destination.

Health and safety protocols have become a top priority for the cruise industry. Cruise lines operating in the Philippines are implementing rigorous health measures to protect passengers and crew members, including vaccination requirements, testing protocols, and enhanced sanitation practices.

There's a growing emphasis on environmental sustainability within the cruise tourism sector. Cruise lines are adopting eco-friendly practices to minimize their environmental footprint, such as reducing single-use plastics, implementing waste management strategies, and supporting conservation efforts in the destinations they visit.

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